Since their inception, NFTs are only growing in popularity among investors and art collectors. Digital artwork can sell for millions of dollars, leading some to get into collecting with the hope of striking it rich.
Whether they’re a flash-in-the-pan fad or legitimate investments for the future (we’re betting on the latter), NFTs are promising for artists and creators. Just about every art form can be translated into an NFT, including the previously underserved realm of performance art.
If you’re interested in turning your own work into an NFT, here’s everything you need to know.
Non-fungible tokens, or NFTs, are one of the recent technological breakthroughs in the past year. Investors, artists, and corporate entities are thrilled to capitalize on the trend.
NFTs are non-fungible, which means they are unique and can’t be replaced with something else. For example, Bitcoin and other currencies are fungible, so you could trade one for another and you’ll have the same thing, with the same value.
An original work of art or one-of-one trading card is non-fungible. You can’t trade it for another, or you’d have something completely different.
At a high level, most NFTs are part of the Ethereum blockchain, though more and more blockchains are implementing their own versions of NFTs. The blockchain tracks who holds and trades NFTs.
Some of these NFTs have sold for millions of dollars. Though people can download a digital file over and over, only the NFT is verified as unique and owned by a specific party.
Basically, anyone can own a print, but only one person owns the original.
Right now, NFTs are focused on speculative assets like fine art and sports or memorabilia collectibles, but it has numerous applications for the future. The verification process has applications for certificates of all types, including birth and death certificates.
But for now, NFTs are made by minting.
The process of minting an NFT can vary by platform. For this tutorial, we’re going to use OpenSea as an example.
OpenSea is the most popular non-fungible token exchange. Users can buy and sell NFTs on the secondary market or sell their NFT collections on the primary market.
There are several steps to minting NFTs on OpenSea.
You need to open a crypto wallet to start and connect it to the NFT marketplace. On OpenSea, you can click on the wallet icon or the “Create” button to start. Other marketplaces have a similar process to connect your wallet.
Depending on the wallet you use and your device, you may be asked to connect your wallet with a QR code on your smartphone or by downloading your wallet to a computer.
When your crypto wallet is connected and you’ve created your marketplace profile, you can fill out the details. Insert links to your website or social media profiles, specify the cryptocurrencies you’ll accept as payment for NFTs, and offer information about yourself or your NFT brand.
Back on the homepage of the marketplace, click the “Create” button. You’ll then have an opportunity to upload a digital file and name your NFT.
You should take advantage of your optional fields, such as a description of your work, an external link to your website, and the blockchain that your NFT is based on.
This is also the opportunity to set up how much you’ll receive in royalties if your NFT is sold again in the future. Standard royalties are between 5% and 10% of the resell price.
When you’re finished, click “Complete.” You’ve minted your first NFT!
The work isn’t quite over. Your NFT is minted, but selling requires the network to compute some information. The transaction has a fee, which is known as the “gas fee.” Pay attention to the transaction fees, since some can be steep.
When you’re ready to sell, make sure you purchase some of your preferred cryptocurrency on a crypto trading app and deposit it in your wallet. You can then transfer the cryptocurrency from your wallet to your NFT marketplace account, depending on which marketplace you choose.
OpenSea allows you to purchase crypto directly from the marketplace by setting up a payment method. Don’t worry about how much crypto you’ll need – it will be calculated automatically.
Your NFT is minted and ready to go up for sale on the market. All you have to do is click the “Sell” button on the NFT description page.
You have to fill in more details, such as the type of sale. You have the option of a fixed price based on preferred cryptocurrency or a timed auction. The marketplace will also disclose any fees for selling. On OpenSea, the price is 2.5% of the NFT sale price.
You also set the royalty payments for ongoing monetization of your work for OpenSea, but some marketplaces don’t include the royalty preferences until this step.
When you’re finished, click “Complete listing.” The marketplace will automatically calculate the gas fee based on the crypto network’s activity level when the listing is live, and then you’ll receive a request for payment from your wallet. Keep in mind that the fees can vary by the minute.
Once you pay the fee and approve the terms, your NFT will be live and available for purchase.
Once your NFT is live, you should engage with your prospective customers to attract a sale. Another option is to create more NFTs with a similar theme and make them part of the collection, which can be appealing to art collectors.
Like any other sale, interacting with leads and customers builds connections and can help you drum up interest in your NFTs. Monitor your activity, check feedback, and keep creating more art pieces to mint as NFTs.
Keep in mind that NFTs created on one marketplace can be transferred and sold on another one. There may be fees for this service, however.
It depends. Almost all NFT platforms and tools make the NFT creation process easy, but it’s not easy to gauge how long it will take.
Everyone has read a story about someone striking it rich overnight with an NFT, but that’s not typical of the experience for first-time NFT artists. Minting and selling NFTs isn’t a get-rich-quick scheme. It will cost some money to sell your digital assets, and there’s no guarantee you’ll get a sale quickly.
That said, the creator economy was among the early adopters of NFTs, and they hold incredible potential for artists of all types to passively monetize their work. Everyone from content producers to fine artists to video game developers are creating NFTs.
If someone is interested in purchasing your NFT after you list it, they can buy it outright or put in a bid, depending on how you set up your listing. If you accept the offer, the records of the transaction will become public. The NFT token is then transferred to the buyer, and the details about their identity and the transaction are recorded on the blockchain.
Digital creators can gain profit quickly from minting NFTs, but it’s important to remember that the trend is still new. Look at minting NFTs like creating any other product or artwork, rather than a get-rich-quick scheme. It takes some work to build your brand and promote your NFTs after minting.